Financial sector's two-year-ahead inflation expectations rise to 3.4%

According to the results of a September survey by the agency Ninamedia, the financial sector's short-term inflation expectations remained at 3.5% for the third consecutive month, continuing to stay within the target range set by the National Bank of Serbia (NBS). The financial sector's inflation expectations for two years ahead rose from 3% in August to 3.4% in September, while expectations for three years ahead remained at 3% for the fourth consecutive month, the NBS reported.

According to the results of an October survey by Bloomberg, the financial sector's one-year-ahead inflation expectations decreased from 3.8% in September to 3.7%.

According to the September survey by Ninamedia, inflation expectations among business representatives for one year ahead have remained unchanged since April, standing at 5%. Medium-term expectations from the business sector returned to the 5% level, where they had been for most of the year, marking an increase compared to August, when expectations for two and three years ahead stood at 4.4% and 4.7%, respectively. Since mid-2024, the medium-term inflation expectations of business representatives have remained within the 4% to 5% range.

Inflation expectations among the population for the one-year and three-year horizons have remained unchanged over the past few months at 10%, while expectations for the two-year horizon fell from 10% in August to 8% in the September survey.

Narodna banka Srbije Beograd

National Bank of Serbia

inflation expectations